BIR Ruling

February 21, 1973 2nd Indorsement Respectfully returned through the Secretary of Finance, Manila, to Mayor Luis Lardizabal of Baguio City, the within papers bearing on his request for exemption from the payment of the amusement tax on the (P0.10) ten centavos voluntary overprice or additional charge per admission ticket on benefit tickets. As represented the voluntary over-pricing is subject to Audit by the City Auditor and with the prior conformity of the Bureau of Internal Revenue. This Office has consistently held that the overprice to the admission price may be considered as donation to the sponsors by the purchasers of the admission tickets and not as part of the admission price provided that the fact of such donation are properly made known to purchasers of the tickets or to movie-goers if for benefit shows by appropriate notices that may be posted in the premises or in the theater's lobby as the case may be. In view thereof, this Office respectfully recommends that the aforesaid request be granted. cdta (SGD.) MISAEL P. VERA Commissioner of Internal Revenue